| Segment Reporting |
The Company operates in two reportable segments based on differences in services provided. Forward Air provides time-definite transportation and logistics services to the deferred air freight market. FASI provides pool distribution services primarily to regional and national distributors and retailers.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies disclosed in Note 1 to the Consolidated Financial Statements included in the Company’s 2010 Annual Report on Form 10-K. Segment data includes intersegment revenues. Assets and costs of the corporate headquarters are allocated to the segments based on usage. The Company evaluates the performance of its segments based on net income (loss). The Company’s business is conducted in the U.S. and Canada.
The following tables summarize segment information about net income (loss) and assets used by the chief operating decision maker of the Company in making decisions regarding allocation of assets and resources as of and for the three and nine months ended September 30, 2011 and 2010.
| |
Three months ended September 30, 2011 |
| |
Forward Air |
|
FASI |
|
|
Eliminations |
|
|
Consolidated |
External revenues |
$ |
118,625 |
|
$ |
17,124 |
|
|
$ |
-- |
|
|
$ |
135,749 |
Intersegment revenues |
|
315 |
|
|
129 |
|
|
|
(444 |
) |
|
|
-- |
Depreciation and amortization |
|
4,373 |
|
|
1,056 |
|
|
|
-- |
|
|
|
5,429 |
Share-based compensation expense |
|
1,421 |
|
|
81 |
|
|
|
-- |
|
|
|
1,502 |
Interest expense |
|
122 |
|
|
9 |
|
|
|
-- |
|
|
|
131 |
Interest income |
|
40 |
|
|
-- |
|
|
|
-- |
|
|
|
40 |
Income tax expense (benefit) |
|
7,420 |
|
|
(133 |
) |
|
|
-- |
|
|
|
7,287 |
Net income (loss) |
|
13,123 |
|
|
(211 |
) |
|
|
-- |
|
|
|
12,912 |
Total assets |
|
378,552 |
|
|
36,099 |
|
|
|
(39,838 |
) |
|
|
374,813 |
Capital expenditures |
|
4,607 |
|
|
244 |
|
|
|
-- |
|
|
|
4,851 |
| |
Three months ended September 30, 2010 |
| |
Forward Air |
|
FASI |
|
|
Eliminations |
|
|
Consolidated |
External revenues |
$ |
105,083 |
|
$ |
16,439 |
|
|
$ |
-- |
|
|
$ |
121,522 |
Intersegment revenues |
|
245 |
|
|
84 |
|
|
|
(329 |
) |
|
|
-- |
Depreciation and amortization |
|
4,189 |
|
|
1,039 |
|
|
|
-- |
|
|
|
5,228 |
Stock-based compensation expense |
|
1,409 |
|
|
97 |
|
|
|
-- |
|
|
|
1,506 |
Interest expense |
|
177 |
|
|
14 |
|
|
|
-- |
|
|
|
191 |
Interest income |
|
30 |
|
|
1 |
|
|
|
-- |
|
|
|
31 |
Income tax expense (benefit) |
|
6,499 |
|
|
(47 |
) |
|
|
-- |
|
|
|
6,452 |
Net income (loss) |
|
9,041 |
|
|
(153 |
) |
|
|
-- |
|
|
|
8,888 |
Total assets |
|
343,732 |
|
|
36,178 |
|
|
|
(38,097 |
) |
|
|
341,813 |
Capital expenditures |
|
2,496 |
|
|
654 |
|
|
|
-- |
|
|
|
3,150 |
| |
Nine months ended September 30, 2011 |
| |
Forward Air |
|
FASI |
|
|
Eliminations |
|
|
Consolidated |
External revenues |
$ |
340,039 |
|
$ |
48,104 |
|
|
$ |
-- |
|
|
$ |
388,143 |
Intersegment revenues |
|
577 |
|
|
292 |
|
|
|
(869 |
) |
|
|
-- |
Depreciation and amortization |
|
12,601 |
|
|
3,133 |
|
|
|
-- |
|
|
|
15,734 |
Share-based compensation expense |
|
4,208 |
|
|
249 |
|
|
|
-- |
|
|
|
4,457 |
Interest expense |
|
435 |
|
|
33 |
|
|
|
-- |
|
|
|
468 |
Interest income |
|
144 |
|
|
-- |
|
|
|
-- |
|
|
|
144 |
Income tax expense (benefit) |
|
21,009 |
|
|
(688 |
) |
|
|
-- |
|
|
|
20,321 |
Net income (loss) |
|
33,914 |
|
|
(1,164 |
) |
|
|
-- |
|
|
|
32,750 |
Total assets |
|
378,552 |
|
|
36,099 |
|
|
|
(39,838 |
) |
|
|
374,813 |
Capital expenditures |
|
17,550 |
|
|
2,742 |
|
|
|
-- |
|
|
|
20,292 |
| |
Nine months ended September 30, 2010 |
| |
Forward Air |
|
FASI |
|
|
Eliminations |
|
|
Consolidated |
External revenues |
$ |
300,990 |
|
$ |
49,639 |
|
|
$ |
-- |
|
|
$ |
350,629 |
Intersegment revenues |
|
808 |
|
|
229 |
|
|
|
(1,037 |
) |
|
|
-- |
Depreciation and amortization |
|
12,352 |
|
|
2,931 |
|
|
|
-- |
|
|
|
15,283 |
Stock-based compensation expense |
|
4,587 |
|
|
300 |
|
|
|
-- |
|
|
|
4,887 |
Interest expense |
|
511 |
|
|
46 |
|
|
|
-- |
|
|
|
557 |
Interest income |
|
40 |
|
|
3 |
|
|
|
-- |
|
|
|
43 |
Income tax expense (benefit) |
|
15,064 |
|
|
(741 |
) |
|
|
-- |
|
|
|
14,323 |
Net income (loss) |
|
21,547 |
|
|
(1,328 |
) |
|
|
-- |
|
|
|
20,219 |
Total assets |
|
343,732 |
|
|
36,178 |
|
|
|
(38,097 |
) |
|
|
341,813 |
Capital expenditures |
|
7,894 |
|
|
3,995 |
|
|
|
-- |
|
|
|
11,889 |
|